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Business And Business Environment Assignment Sample

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Business And Business Environment Assignment Sample


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Organizational success always depends on internal as well as external factors. Internal factors, such as a corporation, can use a variety of organizational structures, including multifunctional. Horizontal, diagonal, and positional facing. There are still various aspects to consider while deciding which organization to join. To make any business successful for the business person, it always needs to have an appropriate strategy so that it can achieve the appropriate business growth of the organization (Sreenivasan et al. 2018). This assignment will focus on Tesco, Unilever and Phillip’s structure of the business, ambition, and purpose of the corporate goals, along with the function of the business and its negative side, as well as the positive side of the business. Organisations can be divided into three types: functional, departmental and matrix.

Functional organisations are those which have a clear separation between the different functions of the organisation. Departmental organisations are those which have a clear separation between the different departments of the organisation. Matrix organisations are those which do not have a clear separation between functions and departments.

Part 1
Various types of organizational structure

For any company, it is very important to choose the appropriate organizational structure to make the business successful. A business is like a venture to succeed. It is equally important to have an appropriate business structure to make the business successful in the long run. A few structures in which a company can be able to choose such a structure are classified as operational, hierarchical, composite, or divisional (Hashim, et al 2021). After analyzing the business situation, it is the next point for the company to choose such things as its growth, the economic outlook, and the industries or its commodities development pipeline.

Background details of Philips (Matrix Structure)

Philips is a Dutch multinational electronics company, founded in 1891. It has a wide range of products like home appliances, lighting and health care. The company has its headquarters in Amsterdam and employs around 47,000 people worldwide. Philips is one of the world's largest providers of healthcare equipment with sales in more than 100 countries. The company operates within four divisions: Healthcare Systems & Services, Consumer Lifestyle & Lighting. A hierarchy is more complicated since it has multiple lines of administrative management. It essentially suggests that staff are responsible for several bosses. Most companies that adopt this organizational culture typically have two management bonds: program and divisional directors. Companies with greater initiatives benefit the most from this style of structure. In this organizational structure, there are various positives. 

In this case, the main objectives of the company are clear as well as effective increased skilled engagement and effective usage of limited funds over the life of the organization. A matrices design enables the realistic integration of the company's goals and activities (Woohyoung et al. 2020). Philips' vision is to improve people's lives through meaningful innovation that makes things better for all those who use its products and services. The company’s mission statement is "to improve people's lives through meaningful innovation". The company’s stakeholders are its customers (consumers), shareholders (investors), employees and suppliers. It also has the legal structure of a public limited company (Netherlands) and is publicly traded on the Euronext Amsterdam exchange (Philips.com, 2022). The legal structure of Philips is a matrix structured organisation. This means that the company has a hierarchical and functional structure at the same time (Philips.com, 2022). 

The company's functional structure has three levels, namely: The top-level consists of the Board of Directors and Executive Committee, who are responsible for setting overall strategy. The middle level consists of four business units, namely: (1) Healthcare (2) Lighting (3) Consumer Lifestyle and Personal Care (4) Specialty Materials (Philips.com, 2022). These units are responsible for developing products in their respective sectors. This is in contrast to most companies that have one business unit per sector but Philips has four business units within one sector. This is because each unit focuses on different aspects of the sector.

Background details of Unilever (Departmental)

Unilever is a multinational company with headquarters in London. The company owns many popular brands including Dove, Lipton, and Knorr. It has been in business for over 100 years and is still growing strong (Unilever.com, 2022). Their products are sold in 190 countries around the world and they employ over 150,000 people globally. This organizational structure is based on various markets, different kinds of products, and various segments of the consumer. For example, for a company based in the USA, the objective of the company is to focus on increasing the sales of its various segments (Unilever.com, 2022). The company also has three branches in several parts of the country. However, the objectives of the company are focused on different targeted audiences and different needs of the consumer. So, the structure of the organization is different with the help of the different needs of the consumers. 

This type of structure is much more effective than the other types of organizational structure because, in this structure, every person has individual responsibilities (Kar, et al. 2021). The company's mission is to "enhance the quality of life by providing consumers with a wide range of high-quality products for their home and personal care." They also have a number of social missions that they follow such as sustainable living and gender equality. The legal structure of Unilever is complicated but it can be simplified as follows: Unilever N.V., an Amsterdam-based Dutch limited liability company, owns 100% of Unilever.

Background Details of Tesco (Functional)

Tesco is the world’s third-largest retailer, with over 2,500 stores and 300,000 employees. Tesco was founded by Jack Cohen in 1919. Tesco is a British multinational grocery and general merchandise retailer. It has its headquarters in Welwyn Garden City, Hertfordshire and employs around 300,000 people across 3 continents (Tesco.com, 2022). The business operates several chains of retailing including Tesco Ireland (which trades as Tesco), Tesco UK (which trades as Tesco), and Fresh & Easy in the United States. Tesco has a variety of stakeholders, including employees, customers, investors, and suppliers. The company's organisational structure is complex with many departments and locations. An organizational structure, often known as a bureaucracy, divides a daily budget into specializations. In an idealistic situation, each function would be overseen by a single person. It's like any corporation that has a salesperson, an HR department, and an ad agency. 

It implies that each person is assigned work and is accountable to a specific supervisor. This structure of the organization has several advantages, such as the fact that most of the people in the organization are adequate at work (Rosnizam et al. 2020). Every manager takes care of all matters related to the organization individually. Tesco's mission is to offer customers the best everyday value which includes quality products at affordable prices; to be the UK's most trusted retailer; to champion British produce; to make a positive difference for our customers and colleagues; to create value for shareholders. Tesco's legal structure is also complicated with partnerships in different countries.

Ambiance for growth of international business

The growth of an international business is determined by a variety of factors, including technological advancement, legislation, finances, competitiveness, personnel, other expenses, and training and employment. On the other hand, environmental challenges, currency markets, importation restrictions, and trade deals have all contributed to the expansion of worldwide markets. Making businesses profitable in the global economy is also known as the globalization of business (Hashim et al. 2021). A national business has taken the initiative to make the business international at this time, and the ambiance of the business has changed because of the presence of various international companies. There are a few factors that should be needed to make the business internally grow.

  • Businesses must understand the importance of developing an appropriate point strategy for the specific area of the business or consumer segment in which they have been operating for extended periods.
  • Make the most of technology to make your business more efficient and profitable. Technological advancements, public policies, institutional actions, consumption patterns, intense demand, and new trade treaties, to name a few (Son et al. 2018).
  • To go through several experiential business plans to get the appropriate idea of the business, then adopt the venture of that particular plan.
  • Before starting any venture, the company needs to evaluate the business plan first and then start the venture to save from monetary loss.

Tesco's background information

In the year of 1924, Tesco first came to be known. Following buying a supply of tea through Thomas, Jack Cohen coined the term. He created new labeling by combining the provider's acronyms (TES) with the very first initial options of his surnames (CO) to make the phrase TESCO. Tesco took the initiative to expand its business globally in the 1990s. So, it has been decided to make the expansion through the 11 countries all over the world a success. The corporation left the United States in 2013, although it is still growing in other countries as of 2018 (Tesco.com, 2022). Tesco has expanded into industries including books, fashion, computers, furnishing, sports, petroleum, computers, financial sectors, telecommunications, and online services since the 1960s (Baker et al. 2020). The company was also embroiled in a controversy over a Christmas advertisement that allegedly harmed the Christian faith. However, after several controversial incidents, a company can be able to maintain its previous fame with an appropriate strategy.

An Overview of Tesco

Tesco is very famous for its retail marketing of grocery items in the UK and other countries. This company has its headquarters in Welwyn Garden City, England. As per the measurement of revenue, Tesco is in the third position worldwide. This company has many shops not only in the UK but also in several countries around the world. The market share of Tesco is around 28.4%, which is a huge share as compared to other market shares in the UK (Tesco.com, 2022).

Tesco's products and services

Tesco has a huge range of products for retail. Such products include publications, garments, gadgets, furnishings, entertainment, gasoline, programming, business institutions, telecommunications, and computer networks. Tesco superstores typically stock over 40,000 consumer products, with 25,000 of those being grocery (Tesco.com, 2022).
Tesco's size and scope are impressive.
Tesco has a huge market in the retailing business, managing almost 2,318 stores as well as 326,000 efficient staff (Tesco.com, 2022). A huge amount of revenue has come from these markets. In the coming years, it will be the best opportunity for Tesco to expand shops in many countries (Voss et al. 2019). Collaboration with other expensive brands also helps Tesco make the business more profitable as well as bring more profits to the business. Tesco's joint venture also helps Tesco to fulfill the objective shortly.

Tesco's purpose, vision, and strategic goals

Tesco's main objective is to increase consumer satisfaction by providing appropriate products to the consumer. Tesco has a very good strategic plan and can make a stand in the competitive markets. Non-food methodology, merchandising products, strategic issues, and UK core competencies are its four distinguishing objectives (Fitzgerald and Kang 202). Tesco's advertising strategy strives to reclaim investors' confidence in the organization. To maintain its historic competitive edge, the organization is focusing on the tagline, "Every help" (Tesco.com, 2022).
Tesco's thorough understanding, as well as details on their investors
Holding 6.9% of the shareholdings, BlackRock, Inc. is the biggest stakeholder. The Vanguard Group, Inc. is the business's foremost investor, holding 4.2 percent of the equity shareholders, while with throughout International Investors LLP owns 3.4 percent (Tesco.com, 2022).

Organisational structure of Tesco

Tesco is an international supermarket and consumer product retailer based in the United Kingdom. Tesco is organized around a formal framework (Tesco.com, 2022). Sanctions and responsibilities are broken down into different pieces in this particular design to guarantee that work is completed promptly and seamlessly. The people who work at the highest possible standard have the most responsibility and power (Kim et al. 2021).

Tesco's operational plan is composed of five committees that are subordinate to the Tesco PLC board of directors. Tesco's governing board consists of eleven members, chosen by the team of managing director Dave Lewis. Tesco's organizational chart is very vertical, indicating the company's wide business span. The board of directors of Tesco's changed during the years 2014 and 2015. John Allan was appointed as the chairman, but Dave Lewis has since been reassigned to the post of CEO. As a result, it is recommended that managerial tiers should be reduced as quickly as feasible to offer more versatility and speedier communication of data (Hashim et al. 2021).

Integration of this chart with Tesco

The strategic components of Tesco have been touched by the integration of the organizational hierarchy. Tesco may achieve the top position in the retail marketplaces in the UK as well as several other nations as a result of this structure. Tesco has a one-of-a-kind sale volume with the most recent revenue due to its shop diversity with a variety of products (Tesco.com, 2022). This chart of the structure can be used to create a good strategy that makes the firm lucrative while also allowing the company to flourish in the future (Sreenivasan et al. 2018).
There are benefits as well as drawbacks of the organizational structure
Any structure of any organization has advantages as well as disadvantages. The organizational structure of Tesco has advantages as well as disadvantages.


  • Tesco will be able to make its employees satisfied with their work because of this arrangement. Ability to create a positive work environment and motivate employees.
  • The organization's coordination structure is excellent, which is why the company has been able to retain a sufficient structure. As a result, it is feasible for the corporation to communicate with employees to motivate them to work (Kim et al. 2019).
  • This is due to the organization's structure, which enables the company to do its tasks efficiently and affordably with the aid of innovative technologies.


  • There is no doubt that that company has a good organizational structure, however, due to due few wrongly decision-making abilities sometimes has created a few problems taught company has lost a lot of capital.

The duty from each sector many crossovers and merged into a position of that other, generating considerable ambiguity, due to the building's hive mind nature. This tall tower is when an organization's hierarchy is divided into various levels with a wide span of control (Kim et al. 2021).

Functions of Tesco

In any market, marketing is a method of presenting products to potential clients. Tesco's marketing staff has been concentrating on gaining a competitive advantage through advertising, promotional offers, membership cards, periodic discounts, and purchase one gets one free. Tesco Marketing Strategy's purpose is to assist customers to get the most out of their shopping experience by meeting their needs and expectations in terms of goods, pricing, distribution channel, and promotional strategies (Kim et al. 2021). Tesco has established a competitive advantage and has grown to become one of the world's top retailers by implementing a strategic marketing plan.
The process of predicting the number of personnel needed to perform a task is known as human resource planning. It is a structured technique for improving the abilities of the workers while keeping the company's current and future demands in mind. Tesco's human resources department ensures that neither employee is discriminated against in any way. It ensures that all employees have equal job possibilities in order to retain the organization's dignity. Human resource management is viewed as a tool for ensuring that personnel will be available to perform organisational tasks in the near future (Tesco.com, 2022). Tesco's HR team's primary goal is to develop their employees' abilities at every opportunity.
A finance function's job is to raise sufficient money to run the firm, as well as to cost and value the product. Now that Tesco is a wider PLC (public limited company), its functions are carried out by departments overseen by Mr Andrew Higginston, finance director. Tesco’s financial department has been renamed the central office. Tesco's finance functions are handled by a team of specialist accountants (Tesco.com, 2022). The financial department at Tesco is divided into two sections: Tesco also plans to set and distribute budgets to its departments through the management accounting department, where they plan their finances for future periods.

Part 2

Critical Reflection

My feelings about this company are too good because the overall behaviour satisfies me. On the other side, to develop the business the suitable points are ordering is the main part of business as the product value is good and can help the business to grow. On other notes, the enquiries of different businesses catering to the changing client behaviour will be delayed in making decisions as well. That is the important part of this system and that is helping to improve and update the business. Internally and externally the market changes are the ability of organisations. Making a good and a half-full and safe communication environment that has a corporate sector, for the delivery time of the products to the customers, Tesco must be aware of the customer’s satisfaction (Kise?áková et al. 2019). The social purposes of the retail industry are an important part of growing the company’s business. Population growth, levels of employment, the growth rate of the population, age distribution, those mainly important for the social factors. Those are also satisfying because the social part of Tesco is also developed.
On the other hand, I think that online development is important for increasing the company’s business. The culture of innovation is one of the important parts of digital-ready culture. Fresh ideas and good thinking are also increasing the company’s business. The innovation strategy on communication is an important part of the group. Ambitious development is an important part of the culture of innovation. Implementing the design that is also important for the digital ready of the culture, digital champion that is improving the union member also and the team. An experimental mindset is always needed for a team when a project is launched. Those parts are very satisfying to me. An ambition, often known as a purpose, is a purpose that will be met in determining the ultimate purpose. It's usually a bridge between the near and distant future, and it's built up to synchronise corporate activities and direct the movements. Tesco has a few objectives for its business such as

Tesco's main objective is to give the appropriate product as well as the necessary encouragement to satisfy the customer's needs in different segments. Through this, the company can make the business stronger in the future (Gebre Borojo and Yushi, 2020).
In the last few years, it has been Tesco’s motto to increase its ecological manufacturing sales to 1 billion pounds. Tesco also reduced the amount of carbon while making their product. Another factor is environmental development which is important for the business. It mainly describes the social, government, customers, and cultural parts externally. On the other hand, transport, pollution and tourist negligence are some of the important parts of this environmental problem that impact the organisational external factors. I think that political development is also important as political stability is a major factor in this part while most of the popular tourist targets are considered safe. Political stability is very important for the business and the country’s economy, it is very helpful to continue and update the country, which is one of the strengths of Tesco (Cugova and Cug, 2020). Economic changes are also an important part of business development. I think that the organisational economy is important for changing the company's structure, and the logical changes are also important for balancing the whole organisational part of Tesco. The other one is environmental changes. Increasing the company’s environmental changes is important. At the time of the products launched some products are launched and plans are created that should be listed down according to the needs of the customers.
An experimental mindset is always needed for a team when a project is launched. The business is a part of watching what people actually need. Because the business I think that is mainly increased by the people's need if the need of the people is fulfilled then the business is increasing. Marketing is a main part of the business because the marketing of the products is so good when business is increased. I think that the Tesco company has strong brand equity, a competent marketing strategy, and the other side is the high marketing presence in the UK (Khan et al. 2019). Those policies are low management and maintenance cost, low rental cost for the small stores mean, and the profit consequently increases. The strategy of this company must be changed if the strategy of this company doesn’t change, then this will fade away from the market. For any business, development is reflected in the organisation's human resource plan, which enables the organisation to assist the company in fulfilling its objective as well as business goals, as well as the personal development of each individual in the company. The low price is mainly for being customer-focused.


The organizational plan is very important for any company like Tesco as well. However, Tesco has a good strategic background. With the help of this, Tesco can do business globally. For Tesco, it is the opportunities as well. Make sure to take the opportunities to make the business more profitable. For example, Tesco needs to make a strategic plan for it. Such as, for Tesco, it is very important to resolve the controversy, which has been done earlier, because this controversy can also limit the scope of future opportunities for Tesco (Rosnizam et al. 2020). Tesco's online business can also help the company to make the business more expandable as well as make the business more prosperous in growth. Also, by getting more involved with the consumer as well as by taking more feedback from the consumer will make the business will be more prosperous (Rosnizam et al. 2020). By resolving several legal matters Tesco will be helped to make the business sustainable in the long run.

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